MUMBAI: Punters have sold a huge number of options on RIL at Rs 2,500 call level on the hope of the stock either correcting or not rising materially above that level post its Q3 results. The Rs 2,500 call on the oil-to-telecom behemoth has the highest outstanding positions, provisional data shows.
The put with the highest outstanding positions is at Rs 2,400. Punters are banking on RIL trading in a Rs 2,390-2,535 range post its numbers. Data shows the bias for downside rather than upside ahead of the group’s Q3 results on Friday evening. The underlying share closed flat at Rs 2476.05 on Friday.
If the stock trades as they predict, they will get to retain the premium paid by the option buyers, whose maximum loss is limited to the premium paid for the call or put options.The risk for the option sellers is a break out of the range they’ve calculated as that would expose them to huge losses. Traded and delivery volumes on the cash counter too remained subdued.
Traded quantity of RIL shares on Friday stood at 52.53 lakh against the three month average of 62.12 lakh. Delivery stood at 27.37 lakh shares against the three month average of 32.96 lakh shares. On Friday, close the stock traded 11% below its 52-week high of Rs 2,751.35 on October 19 last year. Buyers at Rs 2,400 put and Rs 2,500 call will be betting on sharper movement than the sellers.